Correlation Between China World and Chahua Modern
Specify exactly 2 symbols:
By analyzing existing cross correlation between China World Trade and Chahua Modern Housewares, you can compare the effects of market volatilities on China World and Chahua Modern and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China World with a short position of Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Chahua Modern.
Diversification Opportunities for China World and Chahua Modern
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Chahua is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares and China World is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China World Trade are associated (or correlated) with Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of China World i.e., China World and Chahua Modern go up and down completely randomly.
Pair Corralation between China World and Chahua Modern
Assuming the 90 days trading horizon China World is expected to generate 1.02 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, China World Trade is 1.9 times less risky than Chahua Modern. It trades about 0.21 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Chahua Modern Housewares on September 29, 2024 and sell it today you would earn a total of 157.00 from holding Chahua Modern Housewares or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Chahua Modern Housewares
Performance |
| Timeline |
| China World Trade |
| Chahua Modern Housewares |
China World and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Chahua Modern
The main advantage of trading using opposite China World and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Chahua Modern can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chahua Modern will offset losses from the drop in Chahua Modern's long position.| China World vs. Guosheng Financial Holding | China World vs. Peoples Insurance of | China World vs. Sinofibers Technology Co | China World vs. Unisplendour Corp |
| Chahua Modern vs. China Petroleum Chemical | Chahua Modern vs. PetroChina Co Ltd | Chahua Modern vs. China State Construction | Chahua Modern vs. China Railway Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |